ESTERO — Troubled car rental giant Hertz Global Holdings had a good news-bad news situation at the end of last week.
To the good, on Oct. 29 the bankruptcy court overseeing Hertz’s May 22 Chapter 11 filing approved a $1.65 billion loan under a debtor-in-financing plan supported by the first-lien lenders. But on the same day, Oct. 29, the company was officially delisted from the New York Stock Exchange.
NYSE officials, in a statement, noted the delisting was a procedural step that began after the bankruptcy filing. Hertz, in its own release, announced the company will begin trading on the Pink Sheets, or over-the-counter market, under the symbol HTZGQ. “The NYSE determined that Hertz was no longer suitable for listing following the company's May 22, 2020 Chapter 11 filing and its review of the company's appeal of the delisting,” the release states.
On the loan, the company intends to use the fund for working capital and possibly buy new and used cars to expand its fleet. In an Oct. 16 statement, when the financing was announced but before official bankruptcy court approval, Hertz President and CEO Paul Stone said “this new financing will provide additional financial flexibility as we continue to navigate the pandemic's effects on the travel industry and take steps to best position our business for the future. We are pleased with the strong interest from our pre-petition first-lien lenders and appreciate their support of Hertz and our future opportunities as a rental car leader."
The first-lien lenders, according to Bloomberg News and bankruptcy court documents, include Apollo Global Management, Diameter Capital Partners and Silver Point Capital.